US federal budget deficit hits $2.0 trillion in fiscal 2026

The headline deficit number matters less than the composition: spending grew twice as fast as revenue, and debt held by the public reaching 100% of GDP for the first time since 1946 marks a structural shift rather than a cyclical one. This affects the entire Treasury curve and, by extension, every asset priced off it — including tokenized T-bills and other RWA yield products that lean on the front end of the curve. Whether the 6.2% deficit ratio keeps widening as spending outpaces revenue is the open question for duration-sensitive positioning.